Rules for Canadians renting timeshare weeks

[Nancy54cat]

I expect that there will have been previous posts about this but hard to find a thread so apologize up front for probably reposting a question that has probably been answered many times before. I am a Canadian and own more than a million points at Club Wyndham Kona Hawaiian Resort. We have gone there every year for 9-10 weeks for 10 years. We are ready for a change but THINK there are restrictions on renting our weeks to U.S. citizens. Presently we have 9 weeks booked for January, February and March and would love to rent them out so we can go other places. Can anyone tell me what the “rules” are?

 

[sponger76]

I expect that there will have been previous posts about this but hard to find a thread so apologize up front for probably reposting a question that has probably been answered many times before. I am a Canadian and own more than a million points at Club Wyndham Kona Hawaiian Resort. We have gone there every year for 9-10 weeks for 10 years. We are ready for a change but THINK there are restrictions on renting our weeks to U.S. citizens. Presently we have 9 weeks booked for January, February and March and would love to rent them out so we can go other places. Can anyone tell me what the “rules” are?

Other than tax liability that would apply to anyone doing business using property located in the US, I don't think there are blanket rules/laws regarding Canadian citizens renting timeshare units at resorts in the US to US citizens. The more likely limitation is Wyndham's overall stance on renting. You may want to inquire in the Wyndham-specific forum, as there is a lot of discussion about renting there.

 

[Nancy54cat]

Yes, renting through Wyndham’s rental pool is impossible for Canadians unless a person has a U.S. tax account or something. We did research about that and it is virtually impossible. It was a very interesting rabbit hole!

 

[dioxide45]

Yes, renting through Wyndham’s rental pool is impossible for Canadians unless a person has a U.S. tax account or something. We did research about that and it is virtually impossible. It was a very interesting rabbit hole!

So as a Canadian you can't use Extra Holidays to rent? One would still think you could rent through channels like Koala or Redweek? There are plenty of Canadians on TUG that rent timeshare weeks. The mechanics of renting Wyndham reservations isn't any different. The issue around renting Wyndham and their commercial activity and Owner Priority Reservation is different than most other systems.

 

[Nancy54cat]

Actually I have a VERY long story about Extra Vacations if you want to hear it!! But basically, no, Canadians cannot rent through Extra Vacations. Thank you though for your recommendations for other places to list - greatly appreciated.

 

[Ski-Dad]

Yes, renting through Wyndham’s rental pool is impossible for Canadians unless a person has a U.S. tax account or something. We did research about that and it is virtually impossible. It was a very interesting rabbit hole!

I have run into this with another timeshare company. they do it, but there is a 30% holdback for US taxes for non-USA residents. There is a workaround, but it involves filing USA tax returns.

I know VRBO also has a holdback for non-residents. Not sure about Redweek full service. If you rent directly through DIY Redweek or TUG marketplace, you can avoid the holdback.

 

[byeloe]

We rent privately using Tug, Facebook and Redweek.

 

[byeloe]

No issues so far. We usually get a check but have used PayPal also to receive payments

 

[moonstone]

Fellow Canadian here. We have only rented our Florida week a few times and I was lucky enough to find a fellow Canadian TUG member who wanted to rent it and continues to do so each year. That made it so very easy for the both of us for payment, she just sent me an e-Transfer. We have had an American bank account for years and I was prepared to have an American renter deposit the rental payment into it should I have found one that wanted to rent the week.

I am not sure what you mean by Canadians can not rent Extra Vacations. We have rented them from RCI many times, at many US locations, over the 40+ years we have been RCI members. RCI does not permit its members renting out an Extra Vacation (or Last Call) weeks so we have no experience with that. I have booked several units at the same resort for the same week for our adult kids and their families many times so we could all vacation together.


~Diane

 

[Ski-Dad]

Other than tax liability that would apply to anyone doing business using property located in the US, I don't think there are blanket rules/laws regarding Canadian citizens renting timeshare units at resorts in the US to US citizens. The more likely limitation is Wyndham's overall stance on renting. You may want to inquire in the Wyndham-specific forum, as there is a lot of discussion about renting there.

The issue is withholding tax for non-residents. Some timeshare companies and rental agencies want nothing to do with it.

Non Resident Alien - Rental Income Taxation

 

[Nancy54cat]

Fellow Canadian here. We have only rented our Florida week a few times and I was lucky enough to find a fellow Canadian TUG member who wanted to rent it and continues to do so each year. That made it so very easy for the both of us for payment, she just sent me an e-Transfer. We have had an American bank account for years and I was prepared to have an American renter deposit the rental payment into it should I have found one that wanted to rent the week.

I am not sure what you mean by Canadians can not rent Extra Vacations. We have rented them from RCI many times, at many US locations, over the 40+ years we have been RCI members. RCI does not permit its members renting out an Extra Vacation (or Last Call) weeks so we have no experience with that. I have booked several units at the same resort for the same week for our adult kids and their families many times so we could all vacation together.


~Diane

Yes, Canadians can rent weeks through Extra Vacations but Canadian timeshare owners cannot rent out their owned weeks through any places like VRBO or Extra vacations unless they have a U.S. tax account. RCI is different.

 

[Ski-Dad]

Yes, Canadians can rent weeks through Extra Vacations but Canadian timeshare owners cannot rent out their owned weeks through any places like VRBO or Extra vacations unless they have a U.S. tax account. RCI is different.

You can rent your units through VRBO, but they will hold back 30% of the gross rent off your net and remit it to the IRS. I found this out the hard way.

 

[rickandcindy23]

Did someone call you and tell you that you have extra vacations you can rent out? That's a known scam.

Wyndham doesn't want anyone renting reservations except Wyndham.

 

[Nancy54cat]

Many, many calls about “renting” our weeks through companies and yes, scams.

 

[easyrider]

I rented a timeshare from a Canadian. All I had to do was PayPal them. If you have Wyndham points couldn't you just use the points elsewhere ?

Bill

 

[Nancy54cat]

I rented a timeshare from a Canadian. All I had to do was PayPal them. If you have Wyndham points couldn't you just use the points elsewhere ?

Bill

We could except Wyndham is only in the U.S. and there isn’t anywhere other than Hawaii we would want to go.

 

[chapjim]

We could except Wyndham is only in the U.S. and there isn’t anywhere other than Hawaii we would want to go.

Wyndham has resorts in Australia, Canada, the Caribbean, Fiji, and Mexico.

 

[easyrider]

We could except Wyndham is only in the U.S. and there isn’t anywhere other than Hawaii we would want to go.

The problem for a person like me that plans trips months in advance is winter is already booked. Another problem is we like Kona but like Waikiki better. Maybe next year's winter you could rent to a Tugger and use PayPal. Starting early in the Tug marketplace might be a good choice.

I get that Hawaii is where you want to go if you are stuck with the weeks.

Bill

 

[chapjim]

OP must be extraordinarily well-traveled if it's Hawaii or nothing.

 

[Nancy54cat]

OP must be extraordinarily well-traveled if it's Hawaii or nothing.

Or he/she is old enough that Hawaii or nothing makes perfectly good sense. Sooner than later, I will feel the same.

 

[chapjim]

Or he/she is old enough that Hawaii or nothing makes perfectly good sense. Sooner than later, I will feel the same.

I get it! The places I want to go are fewer and fewer.

 

[Nancy54cat]

I get it! The places I want to go are fewer and fewer.

For me, it’s the fewer and fewer places I CAN go. No question about WANTING to go!

 

[dioxide45]

I am not sure what you mean by Canadians can not rent Extra Vacations.

I think they meant Extra Holidays. Extra Vacations is what an RCI member can rent through RCI to stay in a last minute (45 days) discounted week. Extra Holidays is where Wyndham owners can rent out reservations.

 

[Drneufeld]

As someone new to the group and not an owner yet, I'm still trying to understand everything to consider before making a purchase. For Canadians:

1. Bank Account Requirements: Do I need a U.S. bank account to purchase points or a property? Also - is it easier to secure an American bank account once a timeshare owner?
2. Transaction Methods: Are all transactions like these typically managed by a credit card, e-transfer, PayPal, or some other method
3. Maintenance Fees: Typical payment methods?
4. Banking Options: When owning a timeshare, for example, in Hawaii, can a Canadian secure a bank account and credit card in the U.S. just by providing an address?
5. Tax Implications: What are the tax implications of owning a timeshare? Does the Canada Revenue Agency (CRA) need to be informed? If my timeshare in California is rented out, will the CRA and the IRS require me to pay taxes accordingly? Or is it better to be quiet?

Really enjoy reading all the insights and opinions!
Any insights or experiences would be appreciated!

 

[AJCts411]

To purchase a USA time share you do not need a USA bank account. There are several Canadian Banks through which yo can set up a USA Bank account RBC for one. You can also set up a USA dollar bank account. You can also get a USA dollar credit card. There are tax forms to fill out. One is for USA tax (income) withholding exemption, (should you rent). Check with an accountant, but in Canada timeshare income is not normally taxable for an individual. Receiving payments is easy or complicated depending on you situation. Payday will not transfer USA Dollars to you in Canada. Keep in mind every time currency changes, there is about a 3% fee on top of the current exchange rate taken by the banks.